Current Events in July 2020

Facebook has more egg on its face. Besides the bevy of advertisers pulling their ad dollars over the company’s stance on hateful content, the master spirit of social media has confessed that it erred in sharing the personal data of inactive accounts -- and for longer than it had the authority to do so.

In a blog post, Facebook’s Konstantinos Papamiltiadis, VP of Platform Partnerships, came clean about the mistake, saying that “in some instances” third-party apps collected data from inactive users past the 90-day window that Facebook’s Mark Zuckerberg committed to in the face of the Cambridge Analytics scandal.

What exactly happened

The example that Papamiltiadis used was if someone used a fitness app to invite their friends from their hometown to a workout. He said in an instance like that, Facebook didn’t recognize that some of the user’s friends may have been inactive for several months.

Papamiltiadis estimated that around 5,000 app developers continued to receive some sort of information -- like gender or the language spoken -- but that the company has yet to see any hard evidence that the issue went further than the permissions those inactive accounts originally gave when they signed up for the app.

“We fixed the issue the day after we found it. We’ll keep investigating and will continue to prioritize transparency around any major updates,” Papamiltiadis promised.

Going forward

Whether this is an incident error or an egregious one, Facebook quickly instituted new safeguards to keep this from happening again. 

Those new measures fall under a revision of Facebook’s Platform Terms and Developer Policies, which detail app developers' responsibility to safeguard data and respect people’s privacy when using its platform. Specifically, the company is putting limitations on the information developers can share with third parties without the explicit consent from a user. 

Papamiltiadis said that the updated policy should also strengthen data security requirements and spell out exactly when developers have to delete a user’s data.

Gasoline prices have steadily risen off their lockdown lows in recent weeks, but they’re still a lot less than at this time last year. Independence weekend travelers will find the lowest July 4th gas prices in 15 years.

The AAA Fuel Gauge Survey puts the national average price of regular gas at $2.17 a gallon, about the same price as a week ago. Going into the Independence Day holiday last year, the average price was $2.73 a gallon. The average price of premium gas is $2.78 a gallon, three cents more than a week ago. The average price of diesel fuel is $2.43 a gallon, the same as last week.

‘Anything but a normal year’

Gas prices have been held in check by the coronavirus (COVID-19), which crushed demand in April and May. Prices began to rise again in early June, but Patrick DeHaan, head of Petroleum Analysis at GasBuddy, says there is currently little to push prices much higher.

“2020 continues to be anything but a normal year, and low gas prices have persisted into summer’s unofficial halfway point, Independence Day,” DeHaan said. “While gasoline demand has continued to rebound, there is anxiety about the recent surge in new coronavirus cases in the U.S., and that could prevent gas prices from seeing a continued rebound.”

That said, the U.S. has the lowest summer gas prices in about 15 years. But prices could show some volatility in the weeks ahead, depending on the severity of the pandemic.

“Conditions to socially distance and hit the road remain ripe for those able to do so,” DeHaan said. “Prices in all 50 states remain well-below year-ago levels, but should the coronavirus situation improve significantly, gas prices will follow.”

DeHaan predicts that at the end of the day, the summer of 2020 will have the cheapest gas prices American motorists have seen in well over a decade.

The states with the most expensive gas

These states currently have the highest prices for regular gas, according to the AAA Fuel Gauge Survey:

• Hawaii ($3.21)

• California ($3.07)

• Washington ($2.72)

• Nevada ($2.61)

• Oregon ($2.59) 

• Alaska ($2.49)

• Colorado ($2.46)

• Pennsylvania ($2.43)

• Illinois ($2.37)

• Idaho ($2.34)

The states with the cheapest regular gas

The survey found these states currently have the lowest prices for regular gas:

• Mississippi ($1.82)

• Louisiana ($1.84)

• Arkansas ($1.87)

• Alabama ($1.88)

• Missouri ($1.88)

• Texas ($1.89)

• Oklahoma ($1.91)

• South Carolina ($1.93)

• Tennessee ($1.94)

• Virginia ($1.96)

On the heels of a shocking increase in jobs in May, the Labor Department reports that the U.S. economy added 4.8 million jobs in June as businesses began to reopen. The unemployment rate fell to 11.1 percent.

The number of unemployed people who were on temporary layoffs fell by 4.8 million to 10.6 million. That good news, however, was offset by a rising number of people whose jobs are now considered permanently eliminated. That number rose by 588,000 to 2.9 million in June. 

“This rebound in business activity accelerated in June,” said William Beach, commissioner of the Bureau of Labor Statistics. “Nevertheless, total nonfarm employment is 14.7 million, or 9.6 

percent lower than in February.” Furthermore, although unemployment continued to fall in June, the unemployment rate and the number of unemployed people are up by 7.6 percentage points and 12.0 million, respectively, since February.”

Leisure and hospitality lead the way

As it did in May, the leisure and hospitality sector led June’s job creation as more of these types of businesses reopened. The sector added 2.1 million jobs, accounting for about two-fifths of the gain in total nonfarm employment. 

Employment in food services and drinking places rose by 1.5 million, following a similar gain in May. Even with these gains, however, employment in food services and bars is down by 3.1 million since February -- just before the pandemic.

Analysts say the June numbers need to be taken with a rather large grain of salt because some of those jobs that were created in early June may have disappeared again, or may do so in the near future. With the recent spike in coronavirus (COVID-19) cases some bars have closed again in Texas and California. Other states may be considering a similar move.

In New York, Gov. Andrew Cuomo has rescinded an order that would have allowed indoor dining at restaurants, starting this week. Other states where the virus remains in check are reportedly rethinking their reopening plans as officials watch what’s happening in the South and Southwest.

Retail job gains

The same could be true, to a lesser extent, in the retail sector. Retailers added 740,000 positions last month following a 372,000 job gain in May. However, the sector lost 2.4 million jobs in March and April combined, so the industry is operating with 1.3 million fewer jobs than it did in February.

Meanwhile, some retailers are rethinking their reopening plans as well. Apple has added dozens of stores to its list of Apple Stores that are temporarily closed, and McDonald’s has pushed back its dining room reopening plans by three weeks.

In nearly every category, job creation rose but still has a long way to go before reaching pre-pandemic levels. For example, professional and business services added 306,000 jobs in June, but the government notes that employment is 1.8 million below its February level.

Mercedes-Benz USA (MBUSA) is recalling 88 model year 2020 C300s, E350s and GLC300s with turbocharged 4-cylinder gasoline engines.

The screws that retain the turbocharger oil feed and return lines may not have been tightened properly, possibly resulting in an oil leak.

An oil leak in the presence of an ignition source such as hot engine or exhaust components can increase the risk of a fire.

What to do

MBUSA will notify owners, and dealers will inspect the turbocharger oil lines and tighten them -- as necessary -- free of charge.

The recall is expected to begin August 21, 2020.

Owners may contact MBUSA customer service at (800) 367-6372.

We’d all like to have a COVID-19 vaccine… by like yesterday! While the Food and Drug Administration’s latest guidance doesn’t spell out the ifs and whens, it brought one analyst to question if we’ll see anything at all by the end of 2020.

In the new guidance -- “Development and Licensure of Vaccines to Prevent COVID-19” -- FDA Commissioner Dr. Stephen M. Hahn made it black and white that it’s not going to cut any corners in its decision-making.  

“This is particularly important, as we know that some people are skeptical of vaccine development efforts,” said Hahn. “We have not lost sight of our responsibility to the American people to maintain our regulatory independence and ensure our decisions related to all medical products, including COVID-19 vaccines, are based on science and the available data. This is a commitment that the American public can have confidence in and one that I will continue to uphold.”

We can’t get ahead of ourselves 

While we all would like the vaccine process to move at warp speed, the simple fact is that it’s not likely. Out of the 140+ vaccines that have jumped on the bandwagon for a cure, only about 25 have gotten out of the preclinical trial phase. According to Healthline, only two medications have received emergency use authorization from the FDA: the antiviral remdesivir and a drug used to sedate people on a ventilator.

“The FDA seems to suggest that thousands of subjects of safety, and at least six months duration of observation, and clinical efficacy, are all required before any vaccine approval,” wrote analyst Geoffrey Porges of health care and life sciences investment firm SVB Leerink, in a note seen by Barrons. “This is not consistent with the many developers who have suggested that they could be on the market by the end of this year.” 

“With pivotal trials only getting underway in Q3 or later, it is hard to see how those studies could enroll thousands of patients, vaccinate them, and then observe them for safety for six months or more, and then be approved by December 2020.”

The former head of the FDA agrees

Porges is not alone in his forecast. Former FDA chief Dr. Scott Gottleib also agrees -- and he’s also putting his money on the possibility that there’s another cycle of COVID-19 still to come. 

“I think we’ll have to have one more cycle of this virus in the fall, heading into the winter, before we get to a vaccine,” Gottlieb said on CNBC’s “Squawk Box.” “I really think a vaccine is probably a 2021 event, in terms of having wide availability of a vaccine for the general population.” 

Coronavirus (COVID-19) tally as compiled by Johns Hopkins University. (Previous numbers in parentheses.)

Total U.S. confirmed cases: 2,638,338 (2,600,727)

Total U.S. deaths: 127,485 (126,545)

Total global cases: 10,512,383 (10,350,645)

Total global deaths: 512,114 (506,827)

Gottlieb: U.S. probably already at 100,000 new cases per day

White House health adviser Dr. Anthony Fauci made headlines Tuesday when he warned a Senate Committee that the U.S. could go from 40,000 to 100,000 new coronavirus (COVID-19) cases a day if there is any let-up on precautions. But 40,000 is the “official” count.

In his daily appearance on CNBC today, former Food and Drug Administration (FDA) Commissioner Dr. Scott Gottlieb said the U.S. is likely already at 100,000 cases per day, but most are going untested and undiagnosed. Concerns have risen recently because of the huge increases in cases in California, Arizona, Texas, and Florida.

“The problem is that even though we have a lot of testing...we’re going to be short on tests in places where there are epidemics,” Gottlieb said. “States like Texas and Florida, they’re falling behind on testing right now because the testing isn’t evenly distributed across the country.”

Pfizer reports ‘promising results’ from vaccine

Yet another pharmaceutical company has reported positive results from an admittedly small trial of a vaccine against the coronavirus. Pfizer conducted an early-stage trial on 45 human subjects.

Each participant received either a dose of the vaccine or a placebo. The vaccine, which produces neutralizing antibodies, created more of the antibodies in the test subjects than are found in recovered patients.

What’s encouraging, the company said, is that patients who received the lowest dose of the vaccine still had significant levels of antibodies in their blood after 28 days. Pfizer is partnering with German drugmaker BioNTech to develop the product.

FDA sets ground rules for vaccines

The FDA has issued guidance that it says will help drug companies produce safe and effective vaccines against the coronavirus. 

The agency says the guidance formalizes the advice it has been giving in recent months to companies, researchers, and others. It lists the FDA’s current recommendations regarding the data needed to facilitate the manufacturing, clinical development, and approval of a COVID-19 vaccine.

"We recognize the urgent need to develop a safe and effective vaccine to prevent COVID-19 and continue to work collaboratively with industry, researchers, as well as federal, domestic, and international partners to accelerate these efforts,” said FDA Commissioner Dr. Stephen Hahn. “While the FDA is committed to expediting this work, we will not cut corners in our decisions and are making clear through this guidance what data should be submitted to meet our regulatory standards.”

Airline passenger traffic posts big gain in June

Airlines have been quietly adding flights to their schedules and booking more passengers on each aircraft. The latest numbers from the Transportation Security Administration (TSA) tell the story.

TSA reports an average of 482,727 passengers per day cleared U.S. airport security checks points in June. That number is more than double May’s numbers but amounts to a fraction of the passenger traffic moving through U.S. airports in June 2019.

The increase in travelers could pose challenges for carriers hoping to handle the increase in traffic while holding down costs. American Airlines has said it will fly with planes filled to capacity starting today.

Kroger test kit cleared for emergency use

With coronavirus cases spiking, the need for testing has not diminished. Kroger Health, a division of the supermarket chain, announced that it has received emergency FDA approval of its home coronavirus test kit.

Kroger says the kit combines the safety and convenience of at-home sample collection with the expert guidance of a telehealth consultation to help improve the quality of the collection process. It says the kits will be available this week for Kroger’s frontline associates and then to the general public.

“Over the past few months, Kroger Health has been providing Americans with access to COVID-19 testing through community test sites across the country; however, we've observed some individuals do not have access to transportation or live near these community testing locations,” said Colleen Lindholz, president of Kroger Health. “To help ease this burden and provide greater accessibility, we will be offering a home testing solution to our associates first followed by other companies and organizations."

Around the nation

• Michigan: Add Michigan to the list of states that are seeing a spike in coronavirus cases. Gov. Gretchen Whitmer has suspended plans to advance the state’s reopening to Phase 5 and is considering renewing some restrictions. The state has reported a rise in cases in every region.

• New York: Gov. Andrew Cuomo has added eight more states to those whose residents are being asked to self-quarantine for 14 days before coming to New York. Cuomo has also halted plans to allow indoor dining starting this week, expressing concern that New Yorkers are relaxing strict safety protocols that have brought down the state’s case count.

• Massachusetts: You might not have heard much from the Bay State lately in terms of COVID-19 because there hasn’t been much to report. And that’s a good thing. But it is worth noting that there were no COVID-19 deaths reported in the state on Tuesday.

​On Tuesday, the Federal Communication Commission (FCC) formally designated Huawei and ZTE as “national security threats.” 

The action will prohibit U.S. telecom companies from using funds available through a federal program known as the Universal Service Fund to purchase and install equipment from either of the two Chinese telecom giants.

FCC Chairman Ajit Pai said the order, which will immediately go into effect, was supported by a “weight of evidence” that the companies could “cooperate with the country’s intelligence services” to harm U.S. communications. 

“With today’s Orders, and based on the overwhelming weight of evidence, the (FCC’s Public Safety and Homeland Security) Bureau has designated Huawei and ZTE as national security risks to America’s communications networks—and to our 5G future,” Pai said in a statement. 

The FCC added that it “cannot and will not allow the Chinese Communist Party to exploit network vulnerabilities and compromise our critical communications infrastructure.” 

Last November, the FCC voted to “initially” designate the two Chinese companies as national security risks. Tuesday’s order formalizes the vote. 

In spite of the upward trend of COVID-19 infections making the skies anything but friendly, United Airlines is going all-in by tripling the size of its August schedule compared to its daily departures in June, adding nearly 25,000 domestic and international flights compared to July. The company says it has plans to fly 40 percent of its overall schedule in August versus the previous year.

The airline thinks that travelers are regaining their confidence about traveling, at least enough to visit getaway destinations that embrace social distancing and friends and family who have been playing it safe and staying out of harm’s way. 

"We're taking the same data-driven, realistic approach to growing our schedule as we did in drawing it down at the start of the pandemic," said Ankit Gupta, United's vice president of Domestic Network Planning. 

"Demand is coming back slowly and we're building in enough capacity to stay ahead of the number of people traveling. And we're adding in flights to places we know customers want to travel to, like outdoor recreation destinations where social distancing is easier but doing so in a way that's flexible and allows us to adjust should that demand change."

The updated routes

Much of United’s 350 additional daily flights starting in August will pass through its hubs -- Chicago, Denver, and Houston -- but the airline will also put a spin on getting to the great outdoors where the coronavirus is less likely to lurk.

Mountain and national park destinations will be the main recipient of that spin. Aspen, Colorado; Bangor, Maine; Bozeman, Montana; and Jackson Hole, Wyoming will all be getting more inbound flights. Internationally, United's August schedule will include a return to Tahiti and additional flights to Hawaii, the Caribbean, and Mexico. 

United says it’s adding more flights to Brussels, Frankfurt, London, Munich, Paris, and Zurich, but that wish may have already met its match with the European Union keeping its borders closed to U.S.-based travelers.

Here are the highlights of United’s reworked schedule, come August:

• An additional 600 daily flights to more than 200 airports across the U.S.

• Expanding flights at 147 U.S. airports

• Increasing connectivity in United's mid-continental hubs, including Chicago, Denver, and Houston

• Doubling the number of flights out of New York/Newark

• Gassing up and putting about 90 aircraft back into service

• Increasing service between Hawaii and all of its hubs

A complete list of United’s schedule changes is available here.

Safety is still a priority

Yes, passenger revenue is important to United, but it can ill afford to risk the health and safety of its passengers. Just like every other airline, United has had to make adjustments and keep improving on its promise to keep travelers safe. 

For the foreseeable future, United has a checklist that every passenger has to complete before they’ll be let on a flight. Chief among its requirements is that all passengers -- including crew members -- have to wear a face covering. If they don’t, then they may not be allowed to board.

To combat the ongoing threat of COVID-19, Uber will start asking passengers in certain cities to disinfect the backseat of the vehicle they ride in. 

The ride-hailing giant has partnered with Clorox to distribute nearly 600,000 canisters of the company’s disinfecting wipes to drivers in three pilot cities: Atlanta, Chicago, and New York City. 

Passengers will see an in-app prompt alerting them to the presence of the wipes in the vehicle. Uber will also tell riders which “high touch” surfaces in the car would most benefit from cleaning before and after every trip. 

Clorox said passengers should disinfect seat belt buckles, window controllers, and door handles, while drivers should wipe down the steering wheel, gear shifts, cup holders, and door handles on the front of the vehicle.

Cleaner vehicles

Coronavirus cases are continuing to rise in many U.S. states, to such a degree that some states have paused their reopening plans. As of Tuesday, 2.5 million cases of the novel coronavirus have been reported across the nation, and more than 125,000 fatalities have occurred.  

"As we navigate a new normal and cities continue to reopen, we want all Uber users to travel with confidence. That starts with clean cars," Uber wrote in a blog post on Tuesday. "Cleanliness is a shared responsibility and riders should also be making an effort to sanitize the frequently touched areas in the back of the car to help create a cleaner environment for themselves, the driver, and the next passenger."

Last month, Uber revamped its app to include safety guidelines for passengers and drivers. The company now requires drivers and passengers to confirm that they’re wearing a face mask prior to getting into the vehicle. Additional recommendations include keeping the windows down when possible and leaving the front passenger seat unoccupied. 

Many purchases made by consumers preparing to shelter in place amid COVID-19 concerns were left unfulfilled, the Federal Trade Commission said Wednesday. In a blog post, the agency said online shopping complaints about items that never arrived rose sharply in April and May. 

"By the week of April 5, reports of unreceived merchandise were almost on par with previous peak numbers from the December 2019 holiday shopping season," the agency said. By May, the figure had doubled. 

The FTC said “opportunistic” scammers took advantage of the increased demand for items like face masks, gloves, and hand sanitizer and launched a number of illegitimate websites. Reports regarding face masks were the most common complaint. 

“People reported online shops claiming to sell the things they desperately needed but could not get,” the FTC said. “Of course, many sellers have had legitimate supply chain problems, but these reports are about no-show orders, not just shipping delays.” 

Be wary of sites selling in-demand goods

The agency said consumers should be aware that, in recent years, scammers have “honed their ability to put up remarkably polished looking websites.”

“They’ve learned to work social media and online advertising to their advantage, and to peel off negative reviews by simply disappearing and popping back up under a new name,” the FTC said. “This is a global problem, since the web gives scammers cheap access to consumers worldwide.” 

The FTC recommends being wary of sites selling items that are in high demand. Consumers can search for company names with the search terms “scam” or “complaints” to help verify if a site is legitimate. 

COVID-19 scams are still spreading in the midst of the pandemic. The FTC has previously warned of robocall scams related to COVID-19 and multi-level marketing companies using the health crisis to sell products they claim can treat or prevent coronavirus. 

In April, the FTC said the coronavirus outbreak led to more than 15,000 fraud complaints. The agency said scams related to COVID-19 have cost consumers nearly $12 million since the beginning of the year.

Previous studies have explored the recent spike in anxiety disorders, and now a new study is examining how consumers can reduce those negative feelings. 

According to researchers from the University of Connecticut, having rituals in place could help reduce anxious feelings. The researchers explained that rituals give a sense of order because consumers know what to expect from them. This can help people from feeling like their life is out of their control. 

“One thing I like to tell my students is that we as human beings are not as smart as we’d like to think. But thankfully, we are at least smart enough to be able to outsmart ourselves,” explained researcher Dimitris Xygalatas.

“We have many ways of doing this, for instance when we look at ourselves in the mirror before an interview and tell ourselves, ‘Ok I can do this.’ Or when we take deep breaths to calm down. We have all of these hacks that we can use on our...brain. Ritual is one of those mental technologies that we can use to trick ourselves into doing that. That is what these rituals do -- they act like life hacks for us.” 

Finding comfort in rituals

The study took place in Mauritius, an island off the coast of East Africa, where the researchers sought to discover how rituals can help ease anxiety. At the start of the study, all of the participants completed questionnaires that allowed the researchers to gauge their baseline level of anxiety.

For the experiment, the participants were told that they had to create an emergency plan in case of a natural disaster and then make a speech to local government officials that would be recorded. After the preparation period, half the group was taken to a quiet space to relax while the other half was taken to a local temple where they could perform a religious ritual. 

All of the participants wore wearable technology so the researchers could measure their heart rate. After the preparation period, anxiety was assessed again using the same questionnaire. 

The researchers learned that giving the participants time to complete the religious ritual was beneficial in easing their anxiety symptoms. The group that could perform this comforting ritual had a slower heart rate and reported fewer anxiety symptoms than the group who didn’t have the prayer time. 

“The mechanism that we think is working here is that ritual helps reduce anxiety by providing the brain with a sense of structure, regularity, and predictability,” said Xygalatas. 

Managing anxiety

While the researchers plan to investigate these findings further, the say the study results provide valuable insight into how consumers can manage their anxiety and find peace from commonly practiced rituals. 

“Of course it is a combination of factors, and that is why ritual is so powerful: because it combines a number of mechanisms that have to do with the behavior itself, the physical movements, and with the cultural context, the symbolism, and the expectations that go into behavior,” Xygalatas said. 

“To be able to disentangle those things is what we are trying to do next: we are examining these factors one at a time. Those rituals have gone through a process of cultural selection and they are still with us because they fulfill specific functions. They are life hacks that have been with and have served us well since the dawn of our kind.” 

A new study conducted by researchers from Ohio State University explored the effects that regular absences in school can have on consumers entering adulthood. 

The study revealed a correlation between kids who missed school often and greater difficulties in life in early adulthood. The researchers found that missing school often was linked with poorer educational and financial situations, as well as a lower likelihood of participating in local and national elections. 

“There’s this misconception, especially among parents, that it doesn’t matter as much if kids miss school early on -- that it only becomes important when they get to middle or high school,” said researcher Arya Ansari. “This study shows that those early absences do matter, and in ways that many people don’t consider.” 

Attendance is important

To understand the effect that school attendance can have on kids, the researchers analyzed data from nearly 700 students involved in the Study of Early Childhood and Youth Development. 

The students’ attendance records were tracked over the course of the study. When they reached their early twenties, they completed questionnaires about their lives up to that point. The researchers learned that those who missed more days of school were affected in three main areas: education, finances, and civic engagement. 

“Absenteeism in those early years of school has pretty far-reaching consequences,” said Ansari. “It goes beyond just affecting your education and how well you do in school.” 

Having a solid attendance record in elementary and middle school was associated with better academic outcomes in high school. Compared to those who missed school often, those with better attendance were more likely to continue on to college. 

The researchers also learned that missing so much school translated to poorer financial situations, as these students reported they had difficulties finding jobs and keeping up with their bills. 

Lastly, voting, whether in local or national elections, was nearly five times more likely for students who didn’t miss as much school

“If you start out being disengaged with school, you may end up being less engaged with society more broadly,” said Ansari. “We believe disengagement may be one of the key mechanisms linking early school absences to poorer outcomes in early adulthood.” 

What role does the pandemic play?

Since the start of the COVID-19 pandemic, many consumers have had to homeschool their children. 

Though this study didn’t take these unique circumstances into consideration, Ansari explained that these findings emphasize just how important it is for kids to be in school when that becomes possible again. 

“These really are unprecedented times,” Ansari said. “All kids are absent. With that said, the differential access to supports and resources will likely result in even greater variability in outcomes when students return to school after the pandemic. What this work suggests is that we should take absenteeism and its consequences more seriously.” 

In spite of a pandemic that shut down much of the economy in the previous two months, consumers eagerly purchased new cars in June and paid more for them. 

Kelley Blue Book (KBB) reports that the average new vehicle price increased by more than $1,100 last month, a 3 percent gain over June 2019.

When the final numbers are tallied for the April through June quarter, it’s expected the number of new cars sold will be sharply lower. After all, most dealer showrooms were closed until the middle of May.

But when consumers purchased a new car or truck last month, they chose more expensive models with pricier options.

“Though Q2 sales are expected to be down 35 percent due to COVID-19 and the ensuing economic recession, transaction prices over this time strengthened more than normal,” said Tim Fleming, an analyst for Kelley Blue Book.

Financially secure buyers

Fleming says consumers who purchased new vehicles bought more non-luxury cars and light trucks, with a heavy emphasis on pickups and SUVs, which tend to cost more. Buyers also tended to be people unaffected by the pandemic-induced layoffs.

“Today’s new-car buyers are likely more financially secure despite the economic uncertainty, and they are purchasing a disproportionate number of trucks and SUVs,” he said.

The Ford and Nissan brands saw the biggest year-over-year increase in average transaction price (ATP) last month, both rising 7.2 percent. Ford was paced by strong truck and SUV sales while Nissan benefitted from renewed interest in cars.

The ATP of the redesigned Versa rose 15 percent and the Sentra brought 7 percent more. The Frontier got its share of truck sales and rose in price by 4 percent, selling on average for close to $30,000.

The sedan makes a comeback

If there was an eyebrow-raising trend in the June numbers, it might have been the renewed interest in sedans, all but abandoned in recent years by some auto manufacturers. KBB reports that  compacts led the way, rising in price by nearly 4 percent.

Mid-size SUVs cost an average of 6 percent more, thanks in part to the redesigned Ford Explorer, which cost 12 percent more to drive off the lot. 

According to KBB’s analysis, supply and inventory challenges remain a concern across many parts of the country and in high-demand segments. That’s due to factory shutdowns this past spring and slow supply chain ramp-ups. 

Along with the recent turnaround in used-car values, KBB expects new car prices could remain higher than normal during the summer months.

Consumers were significantly more confident in June, according to The Conference Board’s Consumer Confidence Index. But after the coronavirus (COVID-19) shutdown, maybe “up” was the only place confidence could go.

After remaining virtually unchanged in May from April’s dreary number, the index rose from 85.9 to 98.1. An index reading of 100 is considered the benchmark for a positive outlook. Consumers’ assessment of the present situation showed the biggest improvement, rising nearly 18 points. The outlook for the short-term future increased from 97.6 in May to 106.0 in June.

The index is based on random consumer surveys conducted by Nielson, which asked about a variety of business, labor, and general economic trends.

While confidence improved last month, Lynn Franco, senior director of Economic Indicators at The Conference Board, says the index is far below its bull position in February, before the pandemic began to force an economic shutdown.

"The reopening of the economy and relative improvement in unemployment claims helped improve consumers' assessment of current conditions, but the Present Situation Index suggests that economic conditions remain weak,” Franco said. 

Economic activity still low

While consumers appear to be less pessimistic about the short-term outlook, Franco says they don’t appear to believe there will be a significant turnaround in economic activity.

“Faced with an uncertain and uneven path to recovery, and a potential COVID-19 resurgence, it's too soon to say that consumers have turned the corner and are ready to begin spending at pre-pandemic levels," she said.

A stock market rally shrugging off day-after-day of bad news could be one thing lifting people’s spirits, especially if they have a stock portfolio or retirement accounts invested in stocks. But there have been plenty of unpleasant reality checks, including the government’s report this week that nearly half of Americans don’t have a job.

Less pessimistic

Perhaps the best you can say is that consumers’ short-term outlook was less pessimistic in June. The percentage of consumers expecting business conditions will get better over the next six months was virtually unchanged at 42.6 percent. At the same time, there was a marked drop in consumers who expect things to get worse.

The June survey also uncovered an element of realism. Few are expecting a sharp bounce-back the way Wall Street may be envisioning it. 

But when it comes to their short-term income prospects, the percentage of consumers expecting an increase improved from 14.6 percent to 15.1 percent, while the proportion expecting a decrease declined from 15.4 percent to 14.4 percent.

American Honda Motor Co., of Torrance, Calif., is recalling about 25,000 recreational off-highway vehicles (ROVs).

The ROV can move or roll when in the park position, posing crash and injury hazards.

The firm has received three reports of the ROVs moving while in the park position. No injuries are reported.

This recall involves certain model year 2019 & 2020 Honda Pioneer 1000 and Talon 1000 side-by-side vehicles sold in various colors, including: red, blue, green, gray and yellow.

For the Pioneer 1000, the serial number (VIN #) is stamped in the frame at the left rear, below the tilt-up bed/seat. For the Talon 1000, the VIN# is stamped on the left side of the frame, under the left front fender.The name “HONDA” is on the front, sides and the rear of the vehicle. The model name Pioneer 1000 or Talon is printed on a label located on both sides of the vehicle.

The ROVs, manufactured in the U.S., were sold at authorized Honda Powersports dealers nationwide, from November 2018, through March 2020, for between $15,000 and $24,000.

The full list of recalled vehicles can be viewed here. 

What to do

Consumers should immediately stop using the recalled ROVs and contact an authorized Honda Powersports dealer to schedule an appointment for a free inspection and repair. Honda is contacting all known purchasers directly.

Consumers may contact American Honda toll-free at (866) 784-1870 from 8:30 a.m. to 4:30 p.m. (PT) Monday through Friday or online at http://powersports.honda.com/ and click on “Recall Information” at the bottom of the page for more information.

Pilgrim’s Pride Corporation of Waco, Texas, is recalling approximately 59,800 pounds of fully cooked chicken breast nuggets.

The products may be contaminated with extraneous materials -- specifically flexible rubber material.

There are no confirmed reports of adverse reactions.

The following frozen, ready-to-eat item, produced on May 6, 2020, is being recalled:

• 4-lb. plastic bag packages containing “Pilgrim’s FULLY COOKED CHICKEN BREAST NUGGETS,” with a Best-By date of 06 MAY 2021 and lot code of 0127 printed on the retail package. Product cases contain lot codes 0127105009, 0127105010, 0127105011, 0127105012, 0127105013, 0127105014, 0127105015, or 0127105016 printed on the box.

The recalled product, bearing establishment number “P-20728” printed on individual retail packages as well as product cases, were shipped to retail locations in Arizona, Idaho, Oregon and Texas.

What to do

Customers who purchased the recalled product should not consume it, but discard or return it to the place of purchase.

Consumers with questions may contact Ed Tyrrell at (800) 321-1470.

Fresh Express is recalling branded and private label salad products produced at its Streamwood, Ill, facility that contain iceberg lettuce, red cabbage and/or carrots.

There may be a health risk from Cyclospora, an intestinal infection whose symptoms include severe abdominal pain, diarrhea, nausea and vomiting, body aches and fatigue.

Over 200 illnesses have been reported in connection with a current outbreak of Cyclospora occurring in primarily Midwest states.

The recalled products include only those salads that are clearly marked with the letter “Z” at the beginning of the Product Code, which is located in the upper right-hand corner of the front of the package.

Products containing the ingredients iceberg lettuce, red cabbage and/or carrots AND displaying the Product Code Z178, or a lower number, are recalled. They include:

The products were distributed to select retail stores from June 6 – 26, 2020, in states listed in the above table.

What to do

Customers who purchased the recalled products should not consume it, but discard it immediately and not eat it.

Consumers with questions or who want to received refunds may contact the company toll-free at (800) 242-5472 Monday through Saturday from 8 a.m. to 7 p.m. (ET), and on Sunday from 11 a.m. to 7 p.m. (ET).